- Group(s): Key terms and concepts
This is an observation (not a theory) that states that the terms of trade between primary goods and manufactured products deteriorate over time. The Prebisch-Singer Hypothesis (PSH) suggests that, over the long run, prices of primary goods such as coffee and cocoa decline in proportion to prices of manufactured goods such as cars and washing machines.
From the Reference Library
Designed to support Year 12 students in the first year of taking A Level Economics, our Flying Start Student Workshops focus on the core Year 1 teaching content and aim to build...
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